# Govt rules out UPI fee rollback as Congress cries surrender

2026-09-17T01:37:58+00:00 | Governance | Indian Opinion Desk

Corroboration: 21 independent outlets

The government has ruled out any rollback of the 0.4% Merchant Discount Rate (MDR) on UPI merchant transactions above Rs 2,000, effective from October 15. A senior official said the decision is final and in the larger interest of the UPI ecosystem's safety and long-term financial sustainability. Opposition parties, led by the Congress, have demanded immediate withdrawal, with Rahul Gandhi alleging Prime Minister Narendra Modi is 'prostrating' before US President Donald Trump. The finance ministry denied any foreign influence, saying the decision was made independently. The BJP countered that five Congress MPs, including P Chidambaram, had backed a tiered MDR in a parliamentary panel report. Retailers, petrol dealers and apparel bodies warned the fee could push merchants back to cash, especially during the festive season. A PIL has been filed in the Supreme Court questioning the framework's legality. The government clarified that person-to-person transfers and 96% of merchant payments remain free.

## Indian Opinion Analysis

The left-leaning and Congress sources frame the UPI MDR as a surrender to US corporate pressure, linking it to tariff threats and zero-MDR history. Government-aligned and neutral-report sources emphasise sustainability: the Parliamentary Standing Committee on Finance, whose members included five Congress MPs, had recommended a tiered MDR. Congress's Rahul Gandhi now opposes what his own party's MPs, including ex-finance minister P Chidambaram, supported. The balanced reading is that the policy fixes a funding gap the government and committee acknowledged, but its political handling gave the opposition a nationalism-vs-surrender frame. The real test will be adoption by October 15 and whether GST passes costs to consumers.

## Coverage

- timesnownews.com (neutral report) <https://www.timesnownews.com/india/nota-narendra-ongoing-trump-appeasement-congress-dig-at-pm-modi-over-100-percent-us-tariffs-threat-article-156167047>
  Debate format, presents both sides
- timesnownews.com (neutral report) <https://www.timesnownews.com/india/on-donald-trump-100-percent-tariff-threat-govt-sources-say-a-country-is-never-without-a-plan-exclusive-article-156167912>
  Debate format, presents both sides
- nationalheraldindia.com (government critical) <https://www.nationalheraldindia.com/politics/have-a-spine-stand-up-rahul-gandhi-says-modi-prostrating-before-trump-over-upi-fee>
  Leads with Rahul Gandhi's attack, gives govt rebuttal
- thehindu.com (pro government) <https://www.thehindu.com/news/national/pm-decided-to-prostrate-before-trump-says-rahul-on-upi-charge/article71472616.ece>
  Leads with govt questioning Rahul on panel support
- indiatvnews.com (pro government) <https://www.indiatvnews.com/business/news/no-rollback-on-0-4-pc-upi-fee-for-merchant-payments-above-rs-2-000-say-top-govt-officials-2026-09-16-1054414>
  Quotes govt official ruling out rollback
- timesnownews.com (neutral report) <https://www.timesnownews.com/videos/times-now/india-upfront/debate-on-upi-transaction-fees-sparks-political-controversy-video-156170230>
  Debate format, presents both sides
- timesnownews.com (neutral report) <https://www.timesnownews.com/india/just-as-bee-collects-honey-from-flower-niti-aayog-vc-defends-govt-on-upi-charges-article-156170351>
  Debate format, presents both sides
- hindustantimes.com (neutral report) <https://www.hindustantimes.com/india-news/think-twice-about-accepting-cash-retailers-body-on-new-upi-merchant-fee-101789570139912.html>
  Leads with retailers' opposition to UPI fee
- rediff.com (neutral report) <https://www.rediff.com/news/report/left-parties-condemn-upi-fee-rule-allege-us-pressure/20260916.htm>
  Leads with govt rejecting rollback amid opposition
- timesnownews.com (neutral report) <https://www.timesnownews.com/videos/times-now/newshour/debate-on-upi-charges-and-american-influence-in-india-video-156170390>
  Debate format, presents both sides
- thefederal.com (neutral report) <https://thefederal.com/category/business/govt-rules-out-rolling-back-upi-charges-as-opposition-steps-up-attack-256798>
  Leads with trade bodies' opposition, fuel dealers
- timesofindia.indiatimes.com (neutral report) <https://timesofindia.indiatimes.com/india/upi-charges-row-chidambaram-among-5-congress-mps-who-had-backed-revenue-framework/articleshow/134293943.cms>
  Leads with no rethink, covers merchant opposition
- news.abplive.com (neutral report) <https://news.abplive.com/business/upi-charge-from-october-15-petrol-pump-dealers-demand-complete-exemption-1867036>
  Leads with dealers' demand for exemption
- economictimes.indiatimes.com (neutral report) <https://economictimes.indiatimes.com/industry/banking/finance/upi-fee-rollback-ruled-out-0-4-mdr-stays-on-big-payments/articleshow/134287989.cms>
  Lists transactions that will attract MDR
- deccanherald.com (neutral report) <https://www.deccanherald.com/business/customer-and-merchant-banks-to-get-70-of-upi-mdr-revenue-4148715>
  Leads with traders' opposition ahead of festive season
- newindianexpress.com (neutral report) <https://www.newindianexpress.com/business/2026/Sep/16/centre-rules-out-rollback-of-mdr>
  Leads with no-rollback, covers merchant opposition
- indiatoday.in (neutral report) <https://www.indiatoday.in/india/video/naval-collision-pakistan-summons-indian-envoy-mea-highlights-1991-pact-violation-ytvd-2996362-2026-09-16?utm_source=rss>
  Debate clip, economist supports charging merchants
- indiatoday.in (neutral report) <https://www.indiatoday.in/india/video/row-over-upi-mdr-framework-escalates-as-bjp-targets-rahul-gandhi-over-parliamentary-panel-backing-ytvd-2996357-2026-09-16?utm_source=rss>
  Debate clip, economist supports charging merchants
- indiatoday.in (neutral report) <https://www.indiatoday.in/india/story/upi-mdr-framework-bjp-cites-congress-mps-as-rahul-gandhi-seeks-rollback-2996338-2026-09-16?utm_source=rss>
  Debate clip, economist supports charging merchants
- english.mathrubhumi.com (neutral report) <https://english.mathrubhumi.com/news/india/rahul-gandhi-upi-tax-mdr-policy-parliamentary-panel-2026-f8wdrtl0>
  Leads with Congress MPs' panel support for MDR
- aajtak.in (pro government) <https://www.aajtak.in/india/news/story/upi-payment-charge-above-2000-government-congress-mps-mdr-parliamentary-panel-ntc-rlch-rpti-2644190-2026-09-16?utm_source=rss>
  Leads with Congress MPs' panel support in Hindi
- businesstoday.in (government critical) <https://www.businesstoday.in/latest/economy/story/congress-opposes-upi-charges-now-but-5-of-its-mps-backed-finance-panels-mdr-push-556003-2026-09-16?utm_source=rssfeed>
  Leads with Surjewala proposing fee on foreign players
- businesstoday.in (government critical) <https://www.businesstoday.in/india/story/pil-filed-in-supreme-court-against-new-upi-mdr-556004-2026-09-16?utm_source=rssfeed>
  Leads with Surjewala proposing fee on foreign players
- timesnownews.com (neutral report) <https://www.timesnownews.com/videos/times-now/shows/political-debate-over-new-upi-merchant-charges-intensifies-video-156170630>
  Debate format, presents both sides
- ndtv.com (pro government) <https://www.ndtv.com/india-news/5-congress-mps-on-parliament-panel-that-sought-charge-on-upi-payments-did-not-dissent-sources-12056393#publisher=newsstand>
  Leads with Congress MPs' panel support for MDR
- rediff.com (neutral report) <https://www.rediff.com/business/report/govt-questions-rahul-gandhi-on-upi-charges-cites-cong-nod/20260916.htm>
  Leads with govt rejecting rollback amid opposition
- rediff.com (neutral report) <https://www.rediff.com/business/report/upi-mdr-experts-discuss-sustainability-and-digital-growth/20260916.htm>
  Leads with govt rejecting rollback amid opposition
- rediff.com (neutral report) <https://www.rediff.com/business/report/mps-raise-concern-over-upi-merchant-payment-fees/20260916.htm>
  Leads with govt rejecting rollback amid opposition
- rediff.com (neutral report) <https://www.rediff.com/business/report/upi-fee-impact-paytm-shares-rally-fintech-stocks-react-to-new-merchant-charges/20260916.htm>
  Leads with govt rejecting rollback amid opposition
- rediff.com (neutral report) <https://www.rediff.com/business/report/upi-fee-government-puts-price-on-big-merchant-payments/20260916.htm>
  Leads with govt rejecting rollback amid opposition
- livemint.com (pro government) <https://www.livemint.com/news/india/first-legal-challenge-against-upi-mdr-filed-in-supreme-court-11789569772258.html>
  Interview with former DFS secretary defending MDR
- economictimes.indiatimes.com (neutral report) <https://economictimes.indiatimes.com/news/politics-and-nation/upi-fee-issue-raised-at-finance-panel-meet-crypto-report-in-final-stage/articleshow/134295822.cms>
  Lists transactions that will attract MDR
- indiatoday.in (neutral report) <https://www.indiatoday.in/india/story/govt-rejects-upi-charge-rollback-opposition-attacks-mdr-fee-2996329-2026-09-16?utm_source=rss>
  Debate clip, economist supports charging merchants
- indiatoday.in (neutral report) <https://www.indiatoday.in/india/video/bihar-floods-shut-schools-teacher-holds-classes-on-boat-in-katihar-ytvd-2996327-2026-09-16?utm_source=rss>
  Debate clip, economist supports charging merchants
- thefederal.com (neutral report) <https://thefederal.com/category/personal-finance/free-to-fee-what-new-upi-mdr-means-for-you-and-your-kirana-store-256773>
  Leads with trade bodies' opposition, fuel dealers
- telanganatoday.com (government critical) <https://telanganatoday.com/plea-in-supreme-court-challenges-mdr-on-upi-payments-above-rs-2000>
  Leads with opposition rollback demand
- indiatoday.in (neutral report) <https://www.indiatoday.in/business/story/upi-mdr-traders-board-member-urges-centre-to-withdraw-04-charge-2996396-2026-09-17?utm_source=rss>
  Debate clip, economist supports charging merchants
- businesstoday.in (government critical) <https://www.businesstoday.in/latest/economy/story/upi-mdr-no-rollback-of-0-4-fee-above-rs-2000-govt-says-move-will-make-upi-self-sustainable-555971-2026-09-16?utm_source=rssfeed>
  Leads with Surjewala proposing fee on foreign players
- economictimes.indiatimes.com (neutral report) <https://economictimes.indiatimes.com/news/economy/finance/upi-mdr-above-rs-2000-to-attract-18-gst-merchants-can-claim-input-tax-credit/articleshow/134285437.cms>
  Lists transactions that will attract MDR
- deccanherald.com (neutral report) <https://www.deccanherald.com/business/traders-fear-upi-fee-will-push-small-business-back-to-cash-amid-festive-season-4148772>
  Leads with traders' opposition ahead of festive season
- indiatoday.in (neutral report) <https://www.indiatoday.in/india/video/indian-army-paratrooper-performs-tandem-parachute-jump-with-combat-canine-ytvd-2996324-2026-09-16?utm_source=rss>
  Debate clip, economist supports charging merchants
- thehindu.com (pro government) <https://www.thehindu.com/opinion/letters/letters-to-the-editor-september-17-2026/article71473657.ece>
  Leads with govt questioning Rahul on panel support
- timesofindia.indiatimes.com (neutral report) <https://timesofindia.indiatimes.com/city/mumbai/mumbai-traders-oppose-new-levy-on-upi-payments-say-consumers-will-have-to-bear-the-costs/articleshow/134294832.cms>
  Leads with no rethink, covers merchant opposition
- rediff.com (neutral report) <https://www.rediff.com/news/report/government-refuses-to-roll-back-upi-charges-amid-opposition-attack/20260916.htm>
  Leads with govt rejecting rollback amid opposition
- bbc.com (neutral report) <https://www.bbc.com/news/articles/ckpd0y9gdp5lo>
  Balanced BBC report, explains both sides
- businesstoday.in (government critical) <https://www.businesstoday.in/latest/economy/story/randeep-surjewala-questions-upi-mdr-move-says-govt-should-have-charged-foreign-players-annual-participation-fee-555912-2026-09-17?utm_source=rssfeed>
  Leads with Surjewala proposing fee on foreign players
- thefederal.com (neutral report) <https://thefederal.com/category/business/upi-mdr-retailers-apparel-merchants-petrol-dealers-reaction-256767>
  Leads with trade bodies' opposition, fuel dealers
- telanganatoday.com (government critical) <https://telanganatoday.com/rahul-gandhi-opposition-demand-rollback-of-upi-mdr-fee-over-new-charges>
  Leads with opposition rollback demand
- timesofindia.indiatimes.com (neutral report) <https://timesofindia.indiatimes.com/business/india-business/no-rethink-govt-firm-on-upi-fee-amid-rollback-demands/articleshow/134296667.cms>
  Leads with no rethink, covers merchant opposition
- livemint.com (pro government) <https://www.livemint.com/news/india/zeromdr-gave-banks-no-return-on-upi-merchant-onboarding-costs-ex-dfs-secretary-m-nagaraju-11789562151509.html>
  Interview with former DFS secretary defending MDR
- economictimes.indiatimes.com (neutral report) <https://economictimes.indiatimes.com/markets/stocks/news/upi-mdr-could-cost-47-2-bps-with-gst-for-merchants/articleshow/134296943.cms>
  Lists transactions that will attract MDR
- economictimes.indiatimes.com (neutral report) <https://economictimes.indiatimes.com/wealth/save/upi-mdr-10-types-of-transactions-where-merchant-charges-will-apply-p2p-payments-remain-free/articleshow/134281227.cms>
  Lists transactions that will attract MDR
- cnbc.com (neutral report) <https://www.cnbc.com/2026/09/17/upi-payments-visa-amazon-phonepe.html>
  CNBC report, covers bouquets and brickbats
- thehindu.com (pro government) <https://www.thehindu.com/news/national/government-functionary-questions-rahuls-criticism-of-upi-charges-says-congress-mps-in-panel-gave-nod/article71475118.ece>
  Leads with govt questioning Rahul on panel support

Tags: Narendra Modi, NPCI, Rahul Gandhi, Reserve Bank of India, UPI
Canonical: https://indianopinion.org/upi-mdr-from-oct-15-govt-rules-out-rollback-opposition-cries-tax/
License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources.
Cite: https://indianopinion.org/upi-mdr-from-oct-15-govt-rules-out-rollback-opposition-cries-tax/#story-in-brief
